The proposed common supervisor needs to be approved by all 27 EU members. Non-euro members would be allowed to opt in, there also are proposed safeguards to keep the ECB from dominating disputes among the bloc’s supervisors.
Schaeuble said nations whose banks want to tap the fund must also hold talks with euro-area authorities.
“Even when there’s a European banking supervision authority, for a bank capitalization to happen the member state always has to not only make a request, but also agree on the necessary memorandum of understanding with the necessary macro- economic adjustments,” Schaeuble said. “Conditionality is not annulled.”